Starting a non-profit organization in India requires proper legal structure and compliance. One of the most trusted and recognized structures for charitable and non-profit activities is a Section 8 Company. If you are planning to work for social welfare, education, environment, research, or charitable purposes, this guide will help you understand Section 8 Company registration and compliance requirements in 2026.
What is a Section 8 Company?
A Section 8 Company is registered under the provisions of the Companies Act, 2013 for promoting:
Education
Social welfare
Charity
Environmental protection
Art, culture, and research
Sports development
Religious or charitable activities
Unlike other companies, a Section 8 Company does not distribute profits to its members. Any income earned must be reinvested to promote its objectives.
Key Features of a Section 8 Company
Separate legal entity
Limited liability protection
No minimum capital requirement
More credibility compared to Trust or Society
Eligible for government grants and CSR funding
Can be registered with or without “Limited” or “Private Limited” in its name
Section 8 Company Registration Process (2026)
The registration process is completely online through the Ministry of Corporate Affairs (MCA) portal.
Step 1: Digital Signature Certificate (DSC)
Required for proposed directors.
Step 2: Director Identification Number (DIN)
Apply for DIN during incorporation.
Step 3: Name Approval
Submit name application under SPICe+ Part A.
Step 4: Drafting MOA & AOA
Memorandum and Articles must clearly define charitable objectives.
Step 5: Filing Incorporation Forms
Submit SPICe+ forms with required documents.
Step 6: License under Section 8
Central Government approval is obtained during incorporation. After approval, you receive the Certificate of Incorporation.
Documents Required
PAN & Aadhaar of directors
Address proof of directors
Registered office proof
Utility bill (not older than 2 months)
NOC from property owner
MOA & AOA
Compliance Requirements for Section 8 Company
Many people believe non-profit companies have fewer compliances. However, proper compliance is mandatory to avoid penalties.
1. Annual ROC Filing
Filing of Financial Statements (AOC-4)
Filing of Annual Return (MGT-7)
2. Board Meetings
Minimum board meetings as per Companies Act.
3. Income Tax Compliance
Filing of Income Tax Return
12A & 80G registration (if applicable)
4. Audit Requirement
Audit is mandatory if applicable as per law.
5. Maintenance of Books of Accounts
Proper records must be maintained.
Non-compliance may lead to penalties, cancellation of license, or disqualification of directors.
Benefits of Section 8 Company
High credibility and transparency
Better funding opportunities
Separate legal identity
Tax exemptions (subject to approval)
Professional governance structure
Who Should Choose Section 8 Company?
NGOs
Educational institutions
Charitable organizations
Social entrepreneurs
CSR implementation agencies
Conclusion
A Section 8 Company is the most structured and credible legal form for non-profit activities in India. While it offers numerous benefits such as limited liability and higher credibility, regular compliance is crucial to maintain its legal status. If you are planning to register a Section 8 Company or need assistance with annual compliance, professional guidance can help ensure smooth and timely filing. Contact BusinessRights to get complete support for Section 8 Company registration and compliance services .